Need Help: Acronis Recover Fails and creates a small partition

Hello Experts:

I have a Dell desktop with pentium processor and IDE hard drive (40GB). It is from 2003 and has served me well and meets all my needs. I have installed Acrnois True Image 2010 on it, and have successfully restored the image every couple of months to get a pristine system as my daughter uses this system to play games, do school work etc. It was slowing down a lot, so I thought restore time again. But this time, I am not able to restore, and I get an error message that restore failed. The problem (I think, I am not a techie person) is that C drive has been partitioned into two (I have never seen this earlier), with one part being only 30 MB, and other part the remaining HD capacity. When I start Acronis TI, and select the backup (.tib file saved on different hard drive), this time, acronis doesn't find the location on where to restore the image. I only get a new location or something, and then when I click new location, I select the C drive (at this time, I see other small partition), and then it kind of starts, but within 5 seconds I get the error message that restore failed.

When I load Acronis, the following message appears:
(
Loading, please wait...
acronis: insmod: error inserting '/lib/modules/acpiphp.ho': -1 No such device
: No such device
acronis: cannot open module 'st' : no such file or directory
acronis: insmod: error inserting '/lib/modules/floppy.ho' : -1 No such device
: No such device
no raid disks
Reading all physical volumes. This may take a while...
)

I dont think that I have ever noticed this message earlier, but I am not sure.

My original hard disk kept giving the same error, so I thought that may be the hard drive is issue. I went ahead and replaced it with brand new 500 GB (IDE) WD drive. The computer reads it fine, and I have reinstalled the OS (XP) on it. So far so good. Then, I went about restoring image, and again the restore failed and again a small 30 MB or so partition was created. (Remember, this is a brand new disc that I formatted as part of XP install, so I guess Acronis is creating this partition). After the restore failed, the OS wouldn't load, and so I went about reinstalling XP. Then, I used Easeus Partition Master 7.0.1 Home Edition to remove the extra partition and merge it into one big partition. Now, I have only one partition on C drive and XP OS loads fine, but I am scared to try restoring image once again as that will again mess everything. I dont know what is going on. I have also tested with ptedit and it only shows one partition that has 80 and all other lines are 00, so I am guessing there is only one partition now.

Please help..I am going on a field trip on Monday and need to fix this so that my daughter can do her homework.

I also have Acronis TI Home 2009 disc, if that will help.

TIA.